As the Middle East crisis relaxed a bit during the previous week, Gold started to turn to its “old” place, trying to catch its negative correlation with USD. The hawkish comments from Fed Chair Powell regarding potential for another rate hike if the inflation “reaccelerates” in the coming period, turned Gold to the downside. There has been a significant push to the downside from the level of $1.990 all the way down to $1.936, where Gold is finishing the week.
Two weeks ago, the RSI was standing in a clear overbought market side, however, during the previous week, it clearly entered into a reversal point, ending the week at level of 45. It clearly points that the market is currently looking at the oversold side. Moving average of 50 days halted its divergence from MA200, as two lines are currently moving in a parallel. However, there is still no clear indication over the potential cross in the coming period.
The Gold clearly started its price correction path. Regardless of the previous week`s drop in the price, charts are pointing to a probability of a further correction to the downside. However, a short term stop for Gold historically stands at the level of $1.930 which might be tested during the start of the previous week. A move toward the opposite side, might shortly bring Gold back toward the $1.950 up to $1.970, but a move toward the higher grounds is highly unlikely at this moment.
Important news to watch during the week ahead are:
USD: Inflation Rate for October, PPI for October, Retail Sales for October, Building Permits preliminary for October
Two weeks ago, the RSI was standing in a clear overbought market side, however, during the previous week, it clearly entered into a reversal point, ending the week at level of 45. It clearly points that the market is currently looking at the oversold side. Moving average of 50 days halted its divergence from MA200, as two lines are currently moving in a parallel. However, there is still no clear indication over the potential cross in the coming period.
The Gold clearly started its price correction path. Regardless of the previous week`s drop in the price, charts are pointing to a probability of a further correction to the downside. However, a short term stop for Gold historically stands at the level of $1.930 which might be tested during the start of the previous week. A move toward the opposite side, might shortly bring Gold back toward the $1.950 up to $1.970, but a move toward the higher grounds is highly unlikely at this moment.
Important news to watch during the week ahead are:
USD: Inflation Rate for October, PPI for October, Retail Sales for October, Building Permits preliminary for October
